Dangote Refinery is reportedly set to supply a 12.75% stake to new traders.
PoliticalNews Nigeria studies that Dangote Oil Refining Firm (DORC) is reportedly planning to divest a 12.75% stake in its refinery to new traders after the Nigerian Nationwide Petroleum Company (NNPC) Restricted withdrew from fulfilling its obligations for a 20% acquisition of the refinery.
That is contained in a Fitch Score report on Dangote Industries Restricted (DIL), Nigeria’s largest Indigenous conglomerate.
The report which focuses on liquidity issues and debt restructuring of the corporate confirmed that NNPC’s discount of the acquisition of the refinery from 20% to 7.2% means the corporate will supply the remaining 12.75% to new traders.
Fitch famous that the group tends to service its vital syndicated mortgage maturing in August 2024 from the fairness divestment.
“In 2021, Nigerian Nationwide Petroleum Company (NNPC) acquired a 7.25% stake in DORC’s (Dangote Oil Refining Firm) venture entity for USD1.0 billion, with an choice to buy the remaining 12.75% stake by June 2024.
“For the reason that possibility has not been exercised, the group plans to divest a 12.75% stake in DORC in 2024. The group intends to service its vital syndicated mortgage maturing in August 2024 from the fairness divestment. Nevertheless, well timed divestment and assembly the upcoming maturity is very unsure in our view,” Fitch stated.
PoliticalNews Nigeria recollects that the Chief Government Officer (CEO) of Dangote Refinery, Aliko Dangote, stated that the Nigerian Nationwide Petroleum Company (NNPC) Restricted not owns a 20% stake in Dangote Refinery.
The enterprise mogul revealed that the Nigerian oil firm now owns solely 7.2% of the refinery because of the NNPC’s failure to pay the stability of their share, which was due final month in June.
He acknowledged that whereas the NNPC had promised to offer the funds, it has been unable to fulfill its obligations, thus lowering its stake within the refinery to 7.2%.
“The Contract was truly 20% which we had with NNPC and they didn’t pay the stability of the cash up until final 12 months then we gave them one other extension up until June (2024) and so they stated that they’d stay the place they’ve already paid which is 7.2%. So NNPC, the federal government (sic) owns solely 7.2%, not 20%.” Dangote acknowledged.
Following Dangote’s announcement, the spokesperson of NNPC, Olufemi Soneye, additionally launched an announcement confirming that NNPC determined to cap its stake at 7.2% because it now focuses on different funding alternatives.